Loretta:
Your point is well taken. However, the case law on
this subject has evolved over several centuries
of Anglo-American common law. The courts are going to
construe the agreement not to compete in the
most narrow context for many reasons. The agreement
cannot violate laws prohibiting restraint of trade.
The courts are also not going to deprive someone of
the ability to earn a living by enforcing the agreement
any more than is necessary to accomplish its purpose.
Consequently, for example, the courts generally do not
enforce the agreement in a geographic area any larger
than the one in which you operate, regardless of your
intentions of future expansion. The courts generally do
not enforce the agreement for an unduly long period of
time. As you noted above your attorney indicates that
you have three years in Maryland. Lastly, the courts
generally do not enforce the agreements for
activities in excess of those described in the
agreement, such as the Orthodontist example above. If
Maryland does recognized non competition agreements,
you are indeed fortunate to reside in a state that
offers that protection, no matter how limited.
Be mindful also of the expense of enforcing a non competition
agreement. In Connecticut where I practice You first need to
apply for a temproary restraining order to prevent your
opponent from competing until you can get a hearing date.
You then need to move for a temporary injunction to prevent them from
competing until the date of trial. For this period of time the
court may require you to post a bond for the protection of the
defendant in the event that you should lose. Then you have to
obtain a judgment or verdict in your favor at trial. You should
ask your attorney about Maryland's position on all of
this.
I agree that training somone only to have them turn around and
take clients from you is a problem, but it is not unique to this
business. The agreement not to compete is one partial remedy,
but it has its limitations.
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